The volume of retail trade declined by 0.6% in the euro area, new data revealed on Thursday.
Eurostat’s monthly figures show that in October, and compared with September, the seasonally adjusted volume of retail trade saw a 0.6% drop.
The volume of retail trade in the euro area declined by 1.1% for non-food products.
However, food, drinks and tobacco increased by 0.3%, and automotive fuels by 0.6%.
Earlier this week, new data revealed that the UK retail sector saw total retail sales drop by 4.4% in November, when compared to the same period in 2018. This year’s data did not include the Black Friday promotional period, however, and last year’s did.
Over in the UK, the gloomy trading environment to hit the British high street has been well publicised.
Dr. Kerstin Braun, President of Stenn Group, provided a comment on the Eurostat Retail Trade data: “The volume of retail trade in the euro area decreased last month, which is a worrisome sign going into the holiday season and could indicate that the stormy geopolitical tensions are affecting consumer sentiment.”
“Long term, we are concerned about the health of the retail sector. Physical stores have lost its way. Shops are rapidly losing ground to online options yet most of them are clinging to their old ways. Add a website to a fusty old department store and it’s still a fusty old department store,” Dr. Kerstin Braun continued.
“To survive, retailers need to throw out their old notions of targeting and start over. Consumers are still willing to shop in person, but they’re frustrated by the experience. They’re being micro-targeted on the internet but in the shops, it’s a free for all.”
“Shoppers will pay a premium to feel special. The shops where one would expect shopping to be a treat – like department stores – are stuck in the past and hoping to get by with an abundance of unfocused merchandise.”
Dr. Kerstin Braun concluded: “Discounters like [TKMaxx] are in a better position, because shoppers don’t go there expecting a great experience, but rather convenience and price. Even more successful are the retailers that understand that the modern shopper has plenty of options but has found a way to capture their attention with both merchandise and an experience that says ‘this is perfect for you’.”
